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As we previously reported on April 23 and April 27, 2020, in the midst of the COVID-19 pandemic dominating the news, Virginia Governor Ralph Northam recently signed into law a slew of bills passed earlier this year by the General Assembly that transform Virginia’s employment laws. This is the third in a series of alerts discussing the groundbreaking new laws governing workplace discrimination, worker misclassification, wages, restrictive covenants, and employee whistleblowers. Parts 1 and 2 are here and here.

Significant expansion of Virginia’s wage payment law

 Governor Northam signed into law two somewhat conflicting bills (H.B. 123 and S.B. 838) amending Virginia’s wage payment statute (Va. Code § 40.1-29). Both bills create a private cause of action against an employer who fails to pay wages in accordance with the law’s requirements. S.B. 838 also establishes additional criminal and civil liabilities for contractors and subcontractors. Damages in both bills include wages due plus statutory interest, an additional equal amount as liquidated damages, and reasonable attorney’s fees and costs. For a knowing violation, an employee can recover an amount equal to triple the amount of wages due plus reasonable attorney’s fees and costs. The law broadly defines “knowingly” as where the employer (i) has actual knowledge of the information, (ii) acts in deliberate ignorance of the truth or falsity of the information, or (iii) acts in reckless disregard for the truth or falsity of the information. Proof of actual intent to defraud the employee is not required. The statute of limitations for a wage payment action is three (3) years. The Virginia Code Commission will codify the amendments, which take effect on July 1, 2020.
Continue Reading Virginia adopts a wave of new employment laws. Part 3 – Wage payment laws

As we previously reported on April 23, 2020, in the midst of the COVID-19 pandemic that is dominating the news, Virginia Governor Ralph Northam signed into law a slew of bills passed by the General Assembly that transform Virginia’s employment laws. This is the second part of a series of alerts discussing Virginia’s groundbreaking new laws governing workplace discrimination and retaliation, worker misclassification, wages, restrictive covenants, background checks and whistleblower claims [Part 1 is here].

Employers will be subject to substantial liability for misclassification of employees

On March 10 and March 18, 2020, respectively, Governor Northam signed into law H.B. 984 and S.B. 894, which create a private right of action against employers for misclassifying employees as independent contractors. The new law, set to take effect July 1, 2020, will expose employers who misclassify employees as independent contractors to substantial liability, as employees bringing such actions may recover damages for lost wages/salary (including overtime worked, but not paid), employment benefits, or other lost compensation, as well as reasonable attorney’s fees and costs. Most notably, employers will face an uphill battle in defending these claims because the law creates a general presumption that an individual is an employee unless the employer can establish independent contractor status based on Internal Revenue Service guidelines.
Continue Reading Virginia adopts a wave of new employment laws. Part 2 – Worker classification and clampdown on restrictive covenants

In the midst of the COVID-19 pandemic that is dominating the news, Virginia Governor Ralph Northam signed into law a slew of bills passed by the General Assembly that transform Virginia’s employment laws. Effective July 1, 2020, Virginia’s long-standing status as a business-friendly state with few labor and employment laws will end. These new state employment laws are far more protective of workers than current federal law. More important, these state law options likely will drive all employment-related litigation into state court where obtaining summary judgment is nearly impossible.

This is the first in a series of alerts that will discuss Virginia’s groundbreaking new laws governing workplace discrimination and retaliation, worker misclassification, wages, restrictive covenants, background checks and whistleblower claims.Continue Reading Virginia adopts a wave of new employment laws. Part 1 – Expansive discrimination and retaliation protections